“This grant award brings Minnesota one step closer to a state-based health insurance exchange,” Minnesota Management and Budget Commissioner Jim Schowalter said in a statement. “This grant will provide the resources Minnesota needs to establish an exchange in time for open enrollment in October 2013.”

Minnesota has recieved more than $70 million in federal grants over the past two years to hire staff and contractors to build the online health insurance marketplace. Minnesota applied for this latest grant, which will be used for technology, maintenance, call center operation and "consumer outreach" last November.

An estimated 1.3 million Minnesotans are expected to use the exchange system, once the federal requirements for mandatory health insurance coverage goes into effect next year. State officials say the exchanges will make shopping for health plans easier and cheaper -- and will help the state identify people eligible for additional assistance programs.